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SAME-SEX MARRIAGE AND EMPLOYER CHOICES ABOUT DOMESTIC PARTNER BENEFITS.

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Employers were more likely to offer same-sex domestic partner (SSDP) benefits before marriage equality. After nationwide same-sex marriage (SSM) legalization, SSDP benefit offers decreased, suggesting legal access reduced the need for these benefits.

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I13J32K38L2domestic partner benefitshealth insurancesame-sex marriage

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Area of Science:

  • Health Economics
  • Labor Economics
  • Sociology of Law

Background:

  • Employer-sponsored health insurance benefits are a key component of employee compensation.
  • The legal landscape surrounding same-sex relationships in the US evolved significantly, culminating in nationwide same-sex marriage (SSM) legalization.
  • Prior to SSM, some employers offered same-sex domestic partner (SSDP) benefits, potentially driven by internal equity concerns.

Purpose of the Study:

  • To examine employer health insurance decisions regarding SSDP benefits before and after the 2015 nationwide legalization of SSM.
  • To investigate the impact of legal SSM access on the provision of SSDP benefits by private employers.
  • To identify factors driving changes in SSDP benefit offerings post-Obergefell v. Hodges.

Main Methods:

  • Utilized microdata from the 2013-2019 Medical Expenditure Panel Survey-Insurance Component (MEPS-IC) covering over 250,000 establishments.
  • Linked MEPS-IC establishment data with Internal Revenue Service (IRS) data to analyze firm-level characteristics and workforce geography.
  • Employed statistical analysis to compare SSDP benefit offer rates before and after the Obergefell decision, controlling for firm-level factors.

Main Results:

  • Before 2015, private employers were 7 percentage points more likely to offer SSDP benefits compared to different-sex domestic partner (DSDP) benefits.
  • Following the Obergefell decision, the likelihood of offering SSDP benefits significantly decreased, returning to parity with DSDP benefit offer rates.
  • Reductions in SSDP benefits were concentrated in firms whose parent companies had greater pre-Obergefell exposure to legal SSM due to workforce distribution.

Conclusions:

  • Within-firm pay equity norms appear to have been a significant driver for offering SSDP benefits prior to nationwide SSM.
  • Legal access to SSM was associated with a significant reduction in employer-sponsored SSDP benefit offerings.
  • This study provides the first direct empirical evidence linking the legalization of SSM to changes in employer-provided domestic partner benefits.